Market Research Report

Global Carbon Farming Market Research Report: Forecast (2023-2028)

By Methods (Conservation Agriculture, Agroforestry, Reforestation, Grazing Management, Biochar), By Component (Hardware, Software, Services), By End User (Agriculture, Forestry), B...y Region (North America, South America, Europe, The Middle East & Africa, Asia-Pacific), By Company (By Agriculture [BASF SE, Agoro Carbon Alliance {Yara International}, Indigo Ag, Inc., Bayer AG, CropX Inc., Agri, Agrible, AgroSmart, Conservis, Trimble, Others], By Forestry [Ecosphere+, Pachama, Silvi Carbon, TerraCarbon, New Forest Advisory Pty Limited, Finite Carbon, Others]), Read more

  • Environment
  • Sep 2023
  • 192
  • ET55036

Market Definition

Carbon farming involves the usage of digital technologies to monitor, measure, and manage the carbon sequestration potential of agricultural & land management practices. This farming aims to improve the effectiveness & efficiency of carbon farming by utilizing data & analytics to optimize the selection & implementation of carbon sequestration practices.

Market Insights & Analysis: Global Carbon Farming Market (2023-28)

The Global Carbon Farming market is projected to grow at a CAGR of around 11.58% during the forecast period, i.e., 2023-28. The market growth imputes to the soaring awareness about climate change & the need to reduce carbon emissions, as well as the growing adoption of precision agriculture technologies among farmers to optimize the use of resources & reduce greenhouse gas emissions. The surging investments in the development & deployment of these farming solutions by technology providers, agricultural organizations, and research institutions focusing on regenerative agriculture practices are expected to widely support the market's revenue growth.

Further, the rising trend towards organically produced food products, owing to the emerging health issues associated with agricultural fertilizers, is certainly promoting the adoption of digitalized tools for carbon farming. Moreover, advancements in digital technologies, such as cloud computing, big data analytics, and IoT (internet of things) to improve the accuracy & efficiency of carbon farming practices, and enhance the availability of carbon credits & carbon offset programs, are expected to continue to support the revenue growth of the Carbon farming market in the forecast years as well.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 11.58%
Regions Covered North America: US, Canada, Mexico
Europe: Germany, The UK, France, Spain, Italy, Rest of Europe
Asia-Pacific: China, India, Japan, Australia, Indonesia, Rest of Asia Pacific
South America: Brazil, Argentina, Rest of South America
Middle East & Africa: Saudi Arabia, Nigeria, Egypt, South Africa, Rest of Middle East & Africa
Key Companies Profiled

By Agriculture - BASF SE, Agoro Carbon Alliance {Yara International}, Indigo Ag, Inc., Bayer AG, CropX Inc., Agri, Agrible, AgroSmart, Conservis, Trimble, Others

By Forestry - Ecosphere+, Pachama, Silvi Carbon, TerraCarbon, New Forest Advisory Pty Limited, Finite Carbon, Others

Unit Denominations USD Million/Billion

 

Global Carbon Farming Market Driver:

Increasing Need to Accurately Measure & Verify Carbon Sequestration in Agricultural Systems - Carbon farming entails technologies, such as sensors, satellites, machine learning algorithms, etc., to measure & monitor carbon sequestration in soil & vegetation. The ability of these technologies to provide more accurate & cost-effective methods for measuring & verifying carbon sequestration and to get access to carbon credits & other financial incentives is leading to greater adoption of this farming among farmers. As a result, several digital farming providers, such as Indigo Ag, BASF, Bayer, etc., are increasingly establishing partnerships, collaborating, and launching new solutions in the global markets to gain emerging revenue growth opportunities.

Additionally, the effectiveness of Carbon farming in helping farmers optimize their agricultural practices by providing real-time data & insights to improve productivity, reduce inputs, and increase yields, is widely encouraging the adoption of this farming method. Hence, these factors are anticipated to propel the market growth during 2023-28.


Global Carbon Farming Market Research Report: Forecast (2023-2028)

Global Carbon Farming Market Possible Restraint:

Lack of Standardized Protocols & Methodologies for Measuring & Verifying Carbon Sequestration - Carbon farming involves complex processes, and accurately measuring & verifying the amount of carbon that has been sequestered is a high-investment procedure. Presently, there are no standardized protocols or methodologies for evaluating & demonstrating carbon sequestration, which makes it challenging for farmers to trust & invest in carbon credits generated from Carbon farming projects. This lack of standardization has also led to inconsistencies & discrepancies in the carbon accounting process, which has somewhat restricted the full-scale adoption of this farming, specifically in developing countries globally.

In addition, the market is still relatively new & there is limited knowledge and understanding among farmers, landowners, and investors about the potential benefits & opportunities. This has created a barrier for companies in the market to generate demand & revenue for their products & services. However, as companies such as BASF, Indigo, etc., are launching various training programs to educate farmers in both developed & developing countries about the benefits of Carbon farming, the challenge is presumed to no longer hinder the market growth during the forecast period.

Global Carbon Farming Market Growth Opportunity:

Rising Awareness Among the Farmers for Precision Agriculture Practices - The surging adoption of digital technologies & precision agriculture practices by the governments of various countries in the agriculture & forestry sectors, such as remote sensing, satellite imagery, and machine learning to optimize their land management practices, is anticipated to act as the key opportunity for the revenue growth of the market. Additionally, the launch of various projects, programs, and policies by the government of the UK, the US, Canada, etc., would widely promote the adoption of Carbon farming practices for sustainable economic growth. For instance:

  • In 2021, the University of California launched the “Carbon Mapper Project” to map carbon emissions & sequestration at high resolution using satellite data & machine learning. The project would provide valuable information for carbon farming initiatives, enabling more accurate measurement & verification.

Thus, the implementation of varied projects to increase the awareness & adoption of carbon farming among the farmers & forestry departments would contribute to the expansion of the market in the forecast years.

Global Carbon Farming Market Key Trend:

Rising Tendency Towards Accumulating Carbon Credits - The rising adoption of Carbon farming practices to avail carbon credits, owing to its advantages in providing financial incentives to the farmers & landowners to adopt carbon sequestration practices, is a key factor driving the market growth. The credits are a way for companies & other organizations to offset their CO2 emissions by supporting projects that sequester carbon, which can be sold, thereby providing a new source of revenue for farmers & landowners. The ability of these credits to offset the costs associated with adopting these farming practices, which often involve upfront investments in technology & equipment, has further promoted the adoption of digitalized tools for Carbon farming.

Moreover, the launch of various initiatives by the government of the US, Canada, the UK, China, and India, etc., is widely encouraging the adoption of this type of farming. Furthermore, carbon credits help to create a market for CO2 sequestration services & encourage the development of new & innovative technologies & practices. Therefore, further driving innovation in the industry, as well as enhancing the market growth in the following years.

Global Carbon Farming Market (2023-28): Segmentation Analysis

The Global Carbon Farming Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on the Component:

  • Hardware
  • Software
  • Services

Among the listed components, the services segment is expected to acquire a substantial share of the market in the forecast years. It comprises a range of services including technical consulting, training, carbon offset development, project management, and financial services. Technical Consulting is widely adopted by farmers, as this service provides farmers with the necessary knowledge & expertise to implement Carbon farming practices effectively by choosing the appropriate technology solutions, guiding them on how to collect & analyze data, and providing recommendations on how to improve their carbon sequestration & offsetting practices. This helps farmers optimize their operations, increase carbon sequestration potential, and generate more revenue through carbon credits.

Additionally, technical consulting services can help farmers stay up-to-date with the latest industry trends & regulations, ensuring that their practices are sustainable & compliant with relevant standards. Thus, these factors are the prominent reasons anticipated to continue to facilitate the market in the forthcoming years.

Based on the End User:

  • Agriculture
  • Forestry

The Agriculture sector held a substantial share of the market historically, and the same trend is anticipated to continue in the forecast years as well. Agriculture is responsible for a significant portion of greenhouse gas emissions globally, particularly from livestock production & the usage of nitrogen fertilizers. Thus, by adopting this farming practices such as precision & regenerative agriculture, farmers are achieving emission reduction, higher farming revenues, and even generating significant carbon credits.

Additionally, agriculture is a key sector for many economies, including India, China, Nigeria, etc., and improving the sustainability of farming practices could help maintain the long-term viability of this sector. On the other hand, the adoption of Carbon farming in Forestry is marginal in recent years & is expected to grow at a sluggish rate as it requires a longer-term perspective since it can take decades for trees to sequester significant amounts of carbon, thus positively affecting the growth of the market during the forecast period.

Global Carbon Farming Market Regional Projection

Geographically, the market expands across:

  • North America
  • South America
  • Europe
  • The Middle East & Africa
  • Asia-Pacific

Of all the regions globally, North America is predicted to hold a substantial share of the Global Carbon Farming market in the forecast years. The implementation of various initiatives by the government of the US & Canada to support carbon farming practices is one of the key factors augmenting the revenue growth of the market. For instance, the US Department of Agriculture's Natural Resources Conservation Service provides financial & technical assistance to farmers in implementing conservation practices that help sequester carbon.

Additionally, the region has well-established carbon markets, such as the California Carbon Market and the Western Climate Initiative, that provide financial incentives for carbon sequestration practices. These initiatives have contributed to the wider adoption of these farming practices using digitalized tools to enhance productivity.

Moreover, North America has a relatively large amount of land available for carbon farming, with many farmers and ranchers interested in adopting these practices. Thus, companies such as BASF, Indigo, etc., are increasingly expanding in the country to provide various digitalized solutions for carbon farming which includes farm management, financial services, climate modeling, etc., hence notably flourishing the revenue growth of the market.

Global Carbon Farming Industry Recent Developments 

  • 2023: CropX announced the acquisition of a precision irrigation startup, Tule Technologies, to strengthen its analytics platforms & enter into drip-irrigated specialty crops in California, such as tree nuts & vineyards, to promote Carbon farming.
  • 2022: BASF Agriculture Solutions announced a collaboration with Boortmalt, one of the leading malted barley providers, to deliver various tools & platforms to support climate-smart farming practices & reduce CO2 emissions associated with barley production in Ireland.

Regulatory Landscape in the Global Carbon Farming Market

  • In 2021, the European Union (EU) announced a new carbon farming initiative named, “Carbon Farming Initiative,” intending to support the adoption of carbon farming practices across the EU. This would provide funding & technical assistance to farmers & landowners to help them adopt carbon sequestration practices, ultimately boosting the revenue growth of the market.
  • In the same year, the federal government of Canada announced a new carbon offset system that would allow farmers & other landowners to earn carbon credits by adopting carbon sequestration practices. This initiative is presumed to widely influence the Carbon farming industry in the longer run.

Gain a Competitive Edge with Our Global Carbon Farming Market Report

  1. Global Carbon Farming Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
  2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
  3. Global Carbon Farming Market report aids in assessing and mitigating risks associated with entering or operating in the market.
  4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.

Frequently Asked Questions

   A. The Carbon Farming market is expected to grow at a CAGR of around 11.58% during 2023-2028.

   A. The increasing need to accurately measure and verify carbon sequestration in agricultural systems augments the market growth.

   A. Some of the prominent players operating in the market include BASF Agricultural Solutions, Agoro Carbon Alliance (Yara International), Indigo Ag, Inc., Bayer AG, CropX Inc., AgriDigital, Agrible, AgroSmart, Conservis, Trimble, Ecosphere+, Pachama, Silvi Carbon, TerraCarbon, New Forest Advisory Pty Limited, Finite Carbon, etc.

   A. Services is expected to be a key component in the Carbon Farming market during 2023-2028.

   A. North America is estimated to enhance the Carbon Farming market during 2023-2028.

   A. The rising tendency towards accumulating carbon credits augmenting the market growth.

   A. Agriculture & Forestry are the prominent end-users in the Carbon Farming Market.

   A. The increasing awareness among the farmers for precision agriculture practices to lead the market growth in forecast years.

Global Carbon Farming Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Global Carbon Farming Market Trends & Insights
  5. Global Carbon Farming Market Dynamics
    1. Drivers
    2. Challenges
  6. Global Carbon Farming Market Regulations & Policies
  7. Global Agriculture Outlook, 2023
    1. Sector Contribution in GDP, By Country
    2. Total Cultivated Area Vs, Forestry, By Country
    3. Emissions from Agriculture, By Country
  8. Global Carbon Farming Market, Supportive Government Initiatives for Carbon Credit, By Country
  9. Global Carbon Farming Market Hotspots & Opportunities
  10. Global Carbon Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Methods
        1. Conservation Agriculture
        2. Agroforestry
        3. Reforestation
        4. Grazing Management
        5. Biochar
      2. By Component
        1. Hardware
          1. Sensors
          2. Drones
          3. GPS Devices
          4. Irrigation Systems
          5. Other Farm Equipment
        2. Software
          1. Farm Management Software
          2. Crop Modelling and Analytics Software
          3. Climate Modelling Software
          4. Supply Chain Management Software
          5. Others (Decision Support Tools, Carbon Accounting, etc.)
        3. Services
          1. Carbon Offset Development
          2. Project management
          3. Technical Consulting
          4. Financial Services
          5. Training
      3. By End User
        1. Agriculture
        2. Forestry
      4. By Region
        1. North America
        2. South America
        3. Europe
        4. The Middle East & Africa
        5. Asia-Pacific
      5. By Company
        1. Competition Characteristics
        2. Market Share of Leading Companies, By Revenues
  11. North America Carbon Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Methods
      2. By Component
      3. By End User
      4. By Country
        1. The US
        2. Canada
        3. Mexico
    3. The US Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    4. Canada Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    5. Mexico Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
  12. South America Carbon Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Methods
      2. By Component
      3. By End User
      4. By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
    3. Brazil Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    4. Argentina Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
  13. Europe Carbon Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Methods
      2. By Component
      3. By End User
      4. By Country
        1. The UK
        2. Germany
        3. Italy
        4. Spain
        5. France
        6. Rest of Europe
    3. The UK Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    4. Germany Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    5. Italy Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    6. Spain Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    7. France Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
  14. The Middle East & Africa Carbon Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Methods
      2. By Component
      3. By End User
      4. By Country
        1. Saudi Arabia
        2. Nigeria
        3. Egypt
        4. South Africa
        5. Rest of Middle East & Africa
    3. Saudi Arabia Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    4. Nigeria Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    5. Egypt Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    6. South Africa Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
  15. Asia-Pacific Carbon Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Methods
      2. By Component
      3. By End User
      4. By Country
        1. China
        2. India
        3. Japan
        4. Australia
        5. Indonesia
        6. Rest of the Asia-Pacific
    3. China Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    4. India Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    5. Japan Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    6. Australia Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
    7. Indonesia Carbon Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
      2. Market Share & Analysis
        1. By Methods
        2. By End User
  16. Global Carbon Farming Market Key Strategic Imperatives for Growth & Success
  17. Competition Outlook
    1. Competition Matrix
      1. Brand Specialization
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles
      1. By Agriculture
        1. BASF SE
        2. Agoro Carbon Alliance (Yara International)
        3. Indigo Ag, Inc.
        4. Bayer AG
        5. CropX Inc.
        6. Agri
        7. Agrible
        8. AgroSmart
        9. Conservis
        10. Trimble
        11. Others
      2. By Forestry
        1. Ecosphere+
        2. Pachama
        3. Silvi Carbon
        4. TerraCarbon
        5. New Forest Advisory Pty Limited
        6. Finite Carbon
        7. Others
  18. Disclaimer


Carbon Farming Market Segmentation